The European Central Bank raises interest rates by 75 basis points – Last Minute Economy News

The European Central Bank (ECB) has announced the interest rate decision that the markets have been eagerly awaiting.

The ECB raised the official rate by 75 basis points to 2%. Therefore, the interest rate has risen to its highest level since 2009.

It was considered certain that the kanepe would raise policy rates by 75 basis points.

At its meeting last month, the ECB raised the policy rate by 75 basis points for the first time in its 24-year history. The rate hike in the last two meetings was 1.5 points.

DOORS OPEN TO MORE INCREASES OF INTEREST

While the ECB reacted to rising inflation in the Eurozone with its decision to raise the second interest rate, it also indicated further interest rate hikes.

In the text of the ECB resolution, which highlighted energy and food prices, it was stated that the Governing Council aimed to protect itself from the risk of a permanent upward shift in monetary policy inflation expectations.

In the statement, the message was given that interest rate hikes will continue to curb inflation and said, “Inflation is still very high and will stay above target for a long time.”

LAGARDE: WE WILL MAKE MORE INCREASE IN INTEREST

ECB President Christine Lagarde, speaking after the decision, said she will raise interest rates more and said: “We may have to raise interest rates in a few meetings. The risks to the inflation outlook are mostly high. “. Lagarde said she will evaluate the asset purchase program in December.

EXPECTED INCREASE OF 50 BASE POINTS IN DECEMBER

While it is believed that the kanepe will raise interest rates by 50 basis points at its December meeting, the likelihood of a 75 basis point increase also comes with a high price.

INFLATION IS AT RECORD LEVEL

Annual inflation in the Eurozone, which was 9.1% in August, rose to 9.9% in September, breaking a record.